________ occur as a result of changes in the value of currency, whereas ________ occur as a result of ongoing business activities

Which of the following statements is true about privatization?

A. The privatization movement started in China in the early 1980s. B. Privatization involves replacing a state-owned monopoly with a private monopoly. C. For privatization to become successful, countries should adopt communism. D. When newly privatized firms are extensively protected from foreign competition, they have little incentive to restructure their operations to become more efficient. E. In today's context, a country runs the risk of experiencing a serious economic crisis if it liberalizes and privatizes state-owned enterprises.

Which of the following statements is FALSE?

A) Researchers have hypothesized that boards with a majority of outside directors are better monitors of managerial effort and actions. B) Studies have found that firms with independent boards make fewer value-creating acquisitions but are more likely to act in shareholders' interests if targeted in an acquisition. C) One early study showed that a board was more likely to fire the firm's CEO for poor performance if the board had a majority of outside directors. D) Although the firm's stock price increases on the announcement of its addition of an independent board member, the increased firm value appears to come from the potential for the board to make better decisions on acquisitions and CEO turnover rather than from improvements in the firm's operating performance.